Nigerians to pay more for goods - As operators plan to enforce levies at sea ports

Dele Aderibigbe, Lagos - 03.03.2008

PRICES of goods are expected to rise nationwide by at least one per cent, as terminal operators are set to enforce an act which stipulates that concessionaires pay 0.5 per cent on every good imported through the sea ports.

The development is as a result of a levy imposed by the Nigerian Maritime Administration and Safety Agency (NIMASA) Act 2007, which terminal operators had insisted should either be waived by the government or transferred to importers, who would also transfer it to the final consumers.

“We are not saying we will not pay this 0.5 per cent NIMASA Act levy, but we must understand the concessionaires are presently not making that kind of profit. “So, the only way we may meet this demand is to transfer the levy to importers who would then transfer it to the final consumer, ”Managing Director, Apapa Bulk Terminal and a chieftain of the Association of Nigeria Sea-ports Terminal Operators, Captain Emmanuel Omotayo, told the Nigerian Tribune.

Omotayo, who stated that concessionaires were already paying heavily, explained that fees and levies being presently paid by them included lease fees, ships due, cargo royalty and harbour dues, aside from NIMASA which would now be paid 0.5 per cent of overall cost of cargo after collecting a statutory three per cent freight on the same cargo from shipping companies.

Giving a breakdown of what they pay the Nigerian Ports Authority (NPA) alone, Omotayo explained that whereas the NPA collected $8.7 per tonne on general cargo and $6.10 per tonne on bulk in the pre-concession era, terminal operators had been restricted to only $5.9 per tonne.

He also said whereas the NPA collected $196 per 20-feet container and $296 per 40-feet container, concessionaires or terminal operators were restricted to collect $90 and $130 respectively as a result of government directive to reduce cost of doing business in Nigeria’s sea ports by 30 per cent.

According to him, despite the ceiling placed on what they could collect, they must still pay a royalty fee of $1 to NPA as well as VAT per tonne for every cargo handled.